User Account

All Pages

What is the overall tax rate on BAL income

Assignment Help Accounting Basics
Reference no: EM132591146

Question - Sandra would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 11 percent annual before-tax return on a $730,000 investment. Sandra's marginal income tax rate is 37 percent and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income tax). If Sandra organizes BAL as an LLC, she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. BAL's income is not qualified business income (QBI) so Sandra is not allowed to claim the QBI deduction. Assume that BAL will distribute all of its after-tax earnings every year as a dividend if it is formed as a C corporation. What is the overall tax rate on BAL's income in the first year if BAL is organized as an LLC or as a C corporation?

Reference no: EM132591146

Questions Cloud

Explain the principal theories and the various approaches : Explain the principal theories and the various approaches to management that have evolved over time and their application to current management situations
How would make budget performance repot for manufacturing : How would make budget performance repot for manufacturing costs, showing total cost variances for direct materials, direct labor, and overhead
Compute the amount of gross profit to be recognized : Compute the amount of gross profit to be recognized in 20X1 and 20X2 assuming the percentage-of-completion method is used
Determine the total flexible budget materials variance : Monique's Florals produced, Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable (U).
What is the overall tax rate on BAL income : Assume that BAL distribute all of its after-tax earnings every year as a dividend if it is formed as a C corporation. What is overall tax rate on BAL's income
Determine whether there is over or underapplied overhead : Determine whether there is over or underapplied overhead.Activities and information for May Raw materials purchases (paid with cash) 220,000
Determine the total dollar amount of dividends that was paid : A total of $90,000 of dividends was paid in 2019. Use this information to determine the total dollar amount of dividends that was paid
What the budgeted amount of fixed costs units : Fixed costs of $25,600, and operating income of $62,400. Based on this information, the budgeted amount of fixed costs for 13,000 units would be
Determine the dollar amounts that Towson will report : Use this information to determine the dollar amounts that Towson will report on its year-end Balance Sheet for Paid in Capital Common Stock in Excess to par

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a journal entry for each transaction

Prepare a journal entry for each transaction. Discuss the right of shareholders of capital stock for company A that they are entitled to

  What is the amount of the deferred tax asset

What is the amount of the 1) deferred tax asset or liability, if there is a deferred tax liability balance of $40,000 from the previous year

  The overhead allocation rate in franz companys job order

the overhead allocation rate in franz companys job order cost accounting system applies overhead based on direct labor

  Divisional income statements

The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 2016:

  Differences between ifrs and gaap

Discuss at least three significant differences between IFRS and GAAP.

  Explain how moviesplus would account for its revenue

Explain how MoviesPlus would account for its revenue if it did follow GAAP. Should MoviesPlus use GAAP? Explain

  Determine are the presidents motives and actions ethical

Who are the stakeholders in this situation? Are the president's motives and actions ethical? Can Pele shield itself against losses of Cabo Inc.?

  Prepare the journal entries for each transactions

Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock.

  Greene company uses a plantwide overhead rate with

greene company uses a plantwide overhead rate with direct-labor hours as the allocation base. use the following

  Deserving of attention by health care strategists

Why are some strengths and weaknesses that are not competitively relevant deserving of attention by health care strategists? Provide one example of a strength and weakness that are not competitively relevant but deserve attention.

  Discuss the advantages and disadvantages of using machine

hurst mats manufactures custom replacement floor mats for automobiles. the floor mats are made of spun nylon on highly

  Marty and michelle hall both under 65 years of age file a

marty and michelle hall both under 65 years of age file a joint return for 2013. their adjusted gross income for the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd